Problem with running VS2005 pocket pc emulator

I don't understand it!
I want to test a pocket pc 2003 base application written in compact framework 2 beta.
I have tried to run an application on the Visual Studio beta 2 (the latest one) and also in other versions (windbay), but the emulator simply won't start.
In the latest version it tells me he's got some problems with the "TCP connection" and in the Windbay he tell me even if i run a new blank form after build that he's got "Development Errors".

What can i do? i want to use the Compact Framework 2, but i can't test if without the 2005 built in emulator which does not work.

P.S: in the lastest version when i tried to connect through the active sync my Ipaq 3360 which has a pocket pc 2003 OS, it says that my operating system is not updated. what should i update there? what does this mean?